Actew will make a profit of about $13 million - $9 million after tax - from the sale of Ecowise Environmental which it established in 1996.
The sale was announced yesterday by Actew managing director Mark Sullivan. He said Actew's share of the profit would probably flow to the ACT Government as a dividend.
The sale price of Ecowise Environmental was $51 million, of which $40 million was debt free and of which Actew's share would be $20 million. ''This is a significant return on investment,'' Mr Sullivan said.
Ecowise was jointly owned by Actew Distribution Limited, a wholly-owned subsidiary of Actew and Jemena Networks (ACT).
All shares would be sold to Australian Laboratory Services, a wholly owned subsidiary of Campbell Brothers Ltd.
The sale is expected to be completed on November 30. Mr Sullivan said its joint venture partner, previously Singapore Power, had wanted to sell its share in Ecowise Environmental.
''Our view was if we could get good value and preserve the laboratory and analytical services in Canberra and protect the interest of staff, we would sell,'' Mr Sullivan said.
The purchaser had signed a five-year commitment with options to the laboratory remaining in Canberra. All staff conditions would be maintained.
Ecowise Environmental was established by Actew essentially to test its water.
It now provides analysis, monitoring and technical services, and consulting.
Mr Sullivan said Actew had believed the sale of 100 per cent of Ecowise had the best potential to achieve fair value and greatly simplify the ownership structure. Actew had entered the fully competitive sales process subject to receiving fair value with no disruption to services and limited impact on jobs.
A small group of Actew's staff were on secondment to Ecowise.
''Actew is looking at each of these circumstances on a case-by-case basis to ensure the best possible outcome for each of these individuals.'' Ecowise staff would have career opportunities in Australia and overseas as part of a growing laboratory group.
''Actew has overseen the growth of Ecowise through the years into a highly specialised and experienced organisation and is confident that the company will continue to provide excellent environmental services to Actew and ActewAGL that are so important for our business.''